Being an investment, it is taxable. But it would be a bit difficult to place tax provisions on the cryptocurrency.

The government agency plans on to implement some tax rules on Bitcoin such as taxing the sale of particular cryptocurrencies in the market. Attorney Juan Sebastian Peredo states that people should report cryptocurrency investment profits on their income tax return correspondent to the tax rules.

Bitcoin expert Jonathan Alexander Higuera states:

“In Colombia, people are not required to report their investments or transactions in Bitcoins or any other cryptocurrency, so it can be used to evade taxes.”

Bitcoin profits still liable

Due to this, Colombia wants to implicate some tax rules for Bitcoin investors. Even though the Colombia’s Central Bank does not declare Bitcoins to be legal, this cannot stop people from wanting to invest the cryptocurrency as several markets allow investors to invest.

The government plans to put more efforts in taxing the investments in order to regulate profits from cryptocurrencies with the stated aim of ultimately preventing crimes such as money laundering or tax evasion.